Seeking Distressed MF in the Intermountain West

[Marcus Smoot]

We have available funds and are ready to purchase for the right deal.

 

Cap Rate 9% or better

50+ units

50%+ occupancy

1980 or earlier preferred but will look at all.

 

We are an investment real estate company rolling out of another property and need to find something soon....

[Patrick Ede]

Hi where is intermountain west????

[Marcus Smoot]

Colorado, Utah, Nevada, Arizona, Idaho, Wyoming, even consider Oregon or CA.

[Norman Sutton]

Hi Marcus

I am direct to an REO source that has inventory that could suit.

 

Please email me you phone number to [e-mail] and we can discuss

[Nov Burke]

We do have a number of bank direct products nationwide and may have something that matches your criteria.

[Marcus Smoot]

Nov,

 

Please send me what you have currently.  We can close quickly for the right deal.  We will buy any type distressed assets for the right deal and area.  Note or Fee Simple. 

 

Thanks! send what you have to [e-mail], I am currently traveling and would like to review what you have.

[Phillip Walker]

Following is an overview of the protocol for custom bulk REO orders through The Seller.

The Seller builds exclusive, custom tapes for clients based on their "order". These are not tapes that have been "shopped" all over the internet, that you can't find the owner of, or tapes that you will be in a bidding war to win.

The Buyer specifies the area to buy in, as well as price point and amount of rehab they wish to perform and The Seller delivers what is requested. Gone are the days of having to take what's  given to you as you need to when the bank issues a tape. The discounts are much more generous also, which makes for some very profitable transactions.

The Seller that I work with trades daily and moves billions of product a month, so he is able to request what he wants when he wants it due to the sheer volume at which he trades. He has excellent resources for product at a very healthy discounts.

How this begins is that the Buyer would issue and LOI ( letter of intent) stating what they are looking for and where along with the desired level of rehab. It's a very simple document crafted on the Buyer's letterhead.

Along with the LOI, the seller asks for a SPOF (soft proof of funds) which would contain contact information only of the Buyer's bank officer and the name of the bank- no account information is needed. This can be made part of the LOI or can come as a separate document on a bank letterhead.

After this information is provided to the Selling Team and verifications are completed, we then set up an meeting between the Buyer's Rep, and the Seller's Rep. This call is set up to make sure that both sides are clear on the protocol and that the Buyer does truly intend to proceed with placing an order. The Buyer's Rep can have any questions that may arise on procedure answered at that point. Essentially, you can compare this transaction to a standard real estate purchase- before we can get the Seller himself on the phone, his team needs to confirm that The Buyer is ready, willing and able to close... a mantra that we All know very well and live by in the real estate world!

After the call with the Seller's Rep, confirmation that the Buyer definitely wishes to proceed to purchase, and verification of funds, The Buyer is connected DIRECTLY to The Seller to move into contract phase. The Seller will negotiate and customize the terms of the contract for the Buyer DIRECTLY with the actual Buyer---the individual that will actually have signatory power to complete the transaction. There will be no chains of individuals that the Buyer would go through. The Buyer is now DIRECT to The Seller after this initial introduction to the Seller's Rep and confirmation that the Buyer is ready, willing  and able to move forward.

The Seller asks for a 10% Earnest Money deposit , plus fees, prior to releasing the customized tape. The Seller must pledge 10% of his funds to the Bank before they will send him the tape when he's doing these custom orders. To place the order, he needs to see that the Buyer has some 'skin in the game' so to speak and is committed to closing the transaction, so he asks the same commitment of them. Once the Seller receives the signed Purchase Contract, he will open a new escrow account number specifically for the Buyer's transaction. This will be a joint escrow account (not a holding escrow account) between the Buyer and the Seller. The Seller will then forward to the Buyer the account number and contact information for the escrow officer along with wiring instructions.

The Buyer contacts the escrow officer and wires the 10% earnest money deposit into the new account. The deposit is then credited to the Buyer, not the Seller. Once the deposit is verified, the REO tape will be ordered and released. The Seller will provide the tape within 24-72 hours.

The Buyer moves into due diligence, which they can determine the length of during the contract negotiation phase. Normally for a smaller order, 3-5 days is what we see as common. Again, this is stipulated in the contract. Once the buyer has this tape, it is all theirs---you don't have to worry about someone else coming along and outbidding you or getting into a bidding war to purchase the tape. Best of all, the Buyer certainly doesn't  have to worry about getting stuck with product in areas they don't wish to take on. After everything passes Due Diligence, the transaction then moves to closing escrow. Once the due diligence period has ended, according to the terms of the Purchase Contract, the balance of 90% is due and payable.

The contract will state that if the Seller does not perform within a specified amount of time, then the Earnest Money deposit is 100% refundable within 48 hours. There is no risk to the Buyer at all. There is also a stipulation on replacement in the contract, further enforcing the no risk involved factor. If a property is found to be deficient it will be exchanged during the predefined replacement period.

 

If you are a buyer or have buyers please contact: [e-mail]

 

[Nov Burke]

I sent a message directly to your e-mail- don't know whether or not you received it.